Pakistan, Iran eye trade at $5 billion

Mubarak Zeb Khan Published April 23, 2015

ISLAMABAD: Pakistan and Iran have agreed on a five-year trade facilitation plan to enhance bilateral trade to $5 billion.

The understanding was reached during the seventh Pakistan-Iran Joint Trade Committee meeting held in Tehran on Wednesday. Commerce Minister Khurram Dastagir Khan headed the Pakistani delegation while the Iranian side was led by the Minister for Industry, Mines and Trade Mohammad Reza Nematzadeh.

An official statement issued here by the commerce ministry stated that Khurram expressed concern over arbitrary and unilateral import bans, high textile tariffs and import authorisation system.

He called for early elimination of all non-tariff barriers under the 2006 Preferential Trade Agreement.

During the meeting, the current level of trade was reviewed and a decision was taken to develop a five-year trade facilitation plan to fulfill the shared vision of Prime Minister Nawaz Sharif and President Rouhani to increase bilateral trade from $1b to $5bn. Both the sides also agreed to form a working group to suggest widening of the 2006 Pakistan-Iran Preferential Trade Agreement.

The two sides also reiterated the need for joint investment in agro-food processing and infrastructure, particularly in the field of establishing effective rail, air, road and sea links between the two countries, as well as opening new border trade posts at Mand-Pishin and Gabd-Reemdan.

On Iran-Pakistan gas pipeline, the commerce minister said that Gwadar to Nawabshah pipeline was part of Pakistan-China Trade Corridor. Pakistan will arrange construction of the remaining portion of the pipeline from Gwadar to Iran border paving way for import of gas.

The Iranian minister assured that hurdles in the way of bilateral trade would be removed through effective measures.

Earlier, Khurram Dastagir met Iranian Minister of Economy and Finance Dr Ali Tayyab Nia.

Published in Dawn, April 23rd, 2015

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Mubarak Zeb Khan is a senior staff correspondent for Dawn, bringing over two decades of experience to his coverage of political economy, trade, taxation, and public finance. He is a former Innovation Journalism fellow at Stanford University and a Chevening Scholar. He tweets @mubarakzebdawn.

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Freeman

Apr 23, 2015 08:33am

At last some sanity. Trade and good relations with neighbors is vital for development.

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Faraz

Apr 23, 2015 11:13am

Such targets need to established not only with Iran, but with other countries as well, such as Russia.

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Einstein Babar

Apr 23, 2015 11:14am

@Freeman Thank God you told us this top secret.

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Fakhir

Apr 23, 2015 11:15am

Good move, action will tell us the depth and truth in this bang

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Danish Haider

Apr 23, 2015 12:12pm

Will Saudi Arabia and rest of the Arab Monarchies allow this? Will NS be able to afford diverting focus from Saudi Arabia (in view of his huge personal investments in Kingdom)? Will Mullah factor allow more trade with Iran (In view of increasing Sunni/Shia rift in Pakistan)? We are perhaps the only nation where business is either Sunni / Shia. If we have strong relations with KSA - Sunni Business If we have strong relations with Iran - Shia Business

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Einstein Babar

Apr 23, 2015 01:05pm

Good move, India already lost a trade of 5 billion dollars with Afghanistan and now Iran is willing to give more importance to Pakistan. I told long back to Indians that this is big boys game so remain out of it.

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Just Someone

Apr 23, 2015 01:28pm

But the trade should be balanced. Not just imports.

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harmony

Apr 23, 2015 01:37pm

Way to go , friendship and trade with all, enmity with none, except one country , which is the reason why Pakistan is Pakistan today.

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a patriot

Apr 23, 2015 03:23pm

@harmony well said. enemity with none except for one. n for the right reasons.

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Taimoor Khan

Apr 23, 2015 03:42pm

If Iran can contain itself from its silly shenanigans , then it can also benefit from CPEC by exporting its oil and gas to China via Pakistan.

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A shah

Apr 23, 2015 04:27pm

Iran is in India's pocket. So nothing will happen without India's blessing

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Zak

Apr 23, 2015 05:26pm

China $ 47 bn, Iran $ 5 bn-Afghanistan, central trade route projected benefits $ 18 Bn. Wow! $70 bn. Others can resolve the only outstanding issue and apply to join.

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ZAK

Apr 23, 2015 05:27pm

@harmony Yes. I agree with you with all points but one. pakistan will remain like this if you don't change your mind. You cannot succeed without being friends with the regional superpower.

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Ijaz

Apr 23, 2015 05:41pm

It would be helpful if the Pak Iran gas pipeline project was completed first. As I understand Iran has built the pipe to within 3 Km of Pakistan border. Come on Pakistan - extend this to Gwader, Karachi and beyond. This way we can have cheap reliable energy to boost economic growth.

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Jatt

Apr 23, 2015 06:03pm

@ZAK China is the regional superpower and we are friends. Keep good relations with all except our proven enemy to the east.

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Babur

Apr 23, 2015 07:15pm

Glad to see Mr. Khurram Dastagir dressed in shulwaar Kameez on a foreign tour. It's time all our elected representatives, diplomats and bureaucracy don either shulwaar kameez or sherwaani in all their official meetings and functions.

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Raj Patel

Apr 23, 2015 09:28pm

@Einstein Babar In your dream you can keep India out of SA. Otherwise India is there everywhere and it is a big boys game and Pakistan is infant.

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Ridwan

Apr 23, 2015 10:01pm

Iran is absolutely not in India's pocket as some think. Remember, india is close with both Israel and the USA.

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Sunil

Apr 23, 2015 10:04pm

If Pakistan had send its army to fight the Houthi rebels, siding with Saudis, everything between Iran and Pakistan would have snapped, specially the gas pipeline.

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Sunil

Apr 23, 2015 10:12pm

@Einstein Babar Iran is more friendlier to India, than Pakistan. China is assisting Pakistan with the development of a Pakistani port at Gwadar, and on other side Chahabar port of Iran is being developed by India.

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Apr 23, 2015 10:49pm

@Just Someone : Trade can be balanced if Pakistan creates valuable items at a internationally competitive price and for us to do so, we need reliable infrastructure which includes lots of factors: Gas and Electricity at reasonable cost; Reliable and cost efficient roads and railways; security, skilled labor; a reasonable tax structure; A sound and liberal economic policy with minimum government interference etc. If we do not address all of this, we shall remain a net importer and a weak subservient nation

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Apr 23, 2015 11:13pm

@Freeman : Yes, we must have Excellent relations with open visa regimen and free trade with Iran, Afghanistan, India and China for maximum socio-economic development of Pakistan as well as of the region. Open issues with these countries should not be allowed to hold our relationship hostage. Issues will be worked out in due time in a nurturing, non-threatening and trusting environment. A no-war pact with India, Iran and Afghanistan will be a good start

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Imran

Apr 24, 2015 12:06am

Trade between Iran and Pakistan will not only boost economoc growth but also promote harmony and stability in the region.

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sana

Apr 24, 2015 01:28am

@Jatt "@ZAK China is the regional superpower and we are friends. Keep good relations with all except our proven enemy to the east." Your that regional superpower friend is our bestie......and that friend is not your friend believe us..... BTW Pakistan doesn't have any problem with India if it behaves like a normal neighbor instead of bullying us..

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Farrukh Munir

Apr 24, 2015 08:19am

Nonsense. We need actions now.

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Ashok

Apr 24, 2015 08:57am

After appeasing Saudi by joining the Yemen airstrike coalition targeted at Shias, why do you think the Iranis are at Pakistan's side? The right way to go for it is wooing Saudi Arabia and its cohorts.

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